Fuels

Distributors Settle Allegations of Illegal Gas Mixing, Distribution

Agree to pay $2.5 million in civil penalties to resolve claims
WASHINGTON -- Three Colorado-based gasoline distributors have agreed to pay $2.5 million to resolve claims that they illegally mixed and distributed more than one million gallons of gasoline that did not meet Clean Air Act emissions and fuel quality requirements. The settlement with Rocky Mountain Pipeline System LLC, Western Convenience Stores Inc. and Offen Petroleum Inc., was filed in federal court in Denver, announced the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA).

Use of gasoline that does not meet the Clean Air Act's standards for [image-nocss] fuel can result in increased emissions from car tailpipes, affect vehicle performance, and in some cases can damage engines and emissions controls. The settling companies will pay a $2.5 million civil penalty and conduct an environmental project designed to offset the harm EPA alleges was caused by their failure to meet federal gasoline quality requirements.

"Providing and distributing gasoline that fails to meet the Clean Air Act standards for fuel can have serious consequences for human health and the environment," said Ignacia S. Moreno, Assistant Attorney General for the Environment& Natural Resources Division of the Department of Justice. "This settlement appropriately requires that the distributors undertake a project that will result in major annual reductions in emissions of volatile organic compounds in order to offset any harm they may have caused."

"Complying with the Clean Air Act's fuel regulations is critical to ensuring that our nation's important emissions standards are met," said Cynthia Giles, assistant administrator for EPA's Office of Enforcement& Compliance Assurance. "Today's settlement shows that EPA is committed to protecting the air we breathe by reducing illegal air pollution."

According to the government's complaint, at two terminals in Dupont and Fountain, Colo., between 2006 and 2009, the companies produced millions of gallons of illegal gasoline by mixing natural gasoline, a byproduct of natural gas production and ethanol with gasoline previously certified to meet Clean Air Act requirements. The blended gas was distributed and sold by Western Convenience Stores Inc. and Offen Petroleum Inc. at retail gas stations in Colorado and Nebraska.

The Clean Air Act allows refiners to produce gasoline by adding other fuel sources to previously certified gasoline, but anyone using this method must ensure that the blended gasoline still meets applicable emissions and fuel standards. They must also comply with sampling, testing, and quality assurance requirements to ensure that the gasoline meets these standards.

Click herefor more details about the settlement.

Click hereto view the consent decree, which is subject to a 30-day public comment period and final court approval.

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